Share-based and Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2021

Compensation Related Costs [Abstract]

Weighted-average assumptions used in the Black-Scholes option-pricing model

We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	2021		2020		2019
Risk-free interest rate	0.5	%	1.0	%	2.5	%
Expected term	6.3 years		5.8 years		6.5 years
Expected volatility	27.0	%	24.0	%	22.0	%
Expected dividend yield	1.9	%	1.9	%	1.8	%

Summary of award activity

Stock Options and SARs

	Shares (in thousands)		Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year	15,562		$	74.52
Granted	757		103.85
Exercised	(3,720)		60.77
Forfeited or expired	(329)		94.60
Outstanding at the end of the year	12,270	(a)	79.96		6.12	$	723
Exercisable at the end of the year	8,405		$	72.53	5.35	$	557

(a)Outstanding awards include 403 options and 11,867 SARs with weighted average exercise prices of $74.80 and $80.14, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

^[1]

Impact on net income

The components of share-based compensation expense and the related income tax benefits are shown in the following table:

	2021		2020		2019
Options and SARs	$	29	$	75	$	39
Restricted Stock Units	16		20		12
Performance Share Units	30		2		8
Total Share-based Compensation Expense	$	75	$	97	$	59
Deferred Tax Benefit recognized	$	15	$	18	$	9

[1] Outstanding awards include 403 options and 11,867 SARs with weighted average exercise prices of $74.80 and $80.14, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.